1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lawyer [7]
3 years ago
5

Suppose that when the price per ream of recycled printer paper rises from​ $4 to​ $4.50, the quantity demanded falls from 800 to

600 reams per day. Using the midpoint​ formula, what is the price elasticity of demand​ (in absolute​ value) over this​ range? A. 0.003 B. 0.41 C. 2.43 D. 4
Business
1 answer:
Delvig [45]3 years ago
5 0

Answer:

Option (c) is correct.

Explanation:

Initial quantity demanded = 800

New quantity demanded = 600

Initial price = $4

New price = $4.50

Using the midpoint​ formula,

For price:

Average price:

= (Initial price + New price) ÷ 2

= ($4 + $4.50) ÷ 2

= $4.25

Change in price = New price - Initial price

                           = $4.50 - $4

                           = $0.50

For Quantity demanded:

Average quantity demanded:

= (Initial Quantity demanded + New Quantity demanded) ÷ 2

= (800 + 600) ÷ 2

= 700

Change in quantity demanded:

= New Quantity demanded + Initial Quantity demanded

= 600 - 800

= -200

Price elasticity of demand:

=\frac{\frac{Change\ in\ quantity\ demanded}{Average\ quantity\ demanded} }{\frac{Change\ in\ price}{Average\ price}}

=\frac{\frac{(-200)}{700} }{\frac{0.50}{4.25}}

= (- 0.29) ÷ 0.12

= -2.43

You might be interested in
Enlightened marketing calls for building long-run consumer engagement, loyalty, and relationships by continually improving the b
VMariaS [17]

Answer:

A) customer value marketing

Explanation:

Customer value refers to the value that our customers assign to the products or services that our company sells them. In other words, is the cost of our product or service offset by the benefits that we receive from consuming it. As long as the equation is always favorable to our side, i.e. perceived benefits > cost of our product, our customers will continue to purchase our products or services.  

Customer value marketing tries to continuously increase the customers' perceived benefits, therefore always keeping the equation favorable to our side.

6 0
3 years ago
A new business is likely to need what bank service(s)? *
Molodets [167]

Answer:

Checking Account tell me if i'm wrong

Explanation:

7 0
3 years ago
​in the context of in-house software development options, the choice between developing versus purchasing software often is call
Dafna11 [192]
The answer is "build or buy decision".

A build-or-buy decision is the demonstration of picking between assembling an item in-house or acquiring it from an outer provider. In a build-or-buy decision choice, the most critical elements to consider are a piece of quantitative examination, for example, the related expenses of generation and whether the business has the ability to create at required levels. 
8 0
3 years ago
In the long run, profits in a monopolistically competitive market are zero because: a. of government regulations. b. of collusio
zvonat [6]

Answer:

c. firms are free to enter and exit the market.

Explanation:

A monopolistically competitive market is a market in which there are a lot of organizations that sell products that are similar and it tends to be easy to enter and leave the industry. Because it is easy for a company to enter the market and there is a lot of competition, in the long run the economic profit is zero. According to this, the answer is that in the long run, profits in a monopolistically competitive market are zero because firms are free to enter and exit the market.

The other options are not right because a monopolistically competitive market has zero profits because of its low entry barriers and amount of competitors not because of government regulations or an illegal agreement between organizations to control competition. Also, in a monopolistically competitive market the products are similar.

6 0
3 years ago
Swifty Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $26 per year. During Nov
ira [324]

Answer:

A. Dr Cash $705,120

Cr Unearned subscription revenue

B. Dr Unearned subscription revenue $58,760

($705,120 *1/12)

Cr Subscription revenue $58,760

Explanation:

a) Preparation of the entry in November for the receipt of the subscriptions

Dr Cash $705,120

(27,120*$26)

Cr Unearned subscription revenue $705,120

(To record the receipt of the subscriptions)

b) Preparation of the adjusting entry at December 31, 2015, to record sales revenue recognized in December 2015

Dr Unearned subscription revenue $58,760

($705,120 *1/12)

Cr Subscription revenue $58,760

(To record sales revenue recognized)

7 0
3 years ago
Other questions:
  • Kingbird Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that the lease be for 9 years. The equ
    8·1 answer
  • Willow Creek Nursery, with an authorization of 72,000 shares of preferred stock and 210,000 shares of common stock, completed se
    14·1 answer
  • The BEST explanation of why there will always be scarcity is because Question 5 options: a) people and their tools are efficient
    8·1 answer
  • Period costsSelect one:a. are used to compute product cost.b. are selling costs and administrative costs.c. can be included in o
    14·1 answer
  • Beginning inventory, purchases, and sales data for dvd players are as follows: november 1 inventory 120 units at $39 10 sale 90
    9·2 answers
  • Flaws are counted on a standard steel plate (sheet). Each sheet has the exact same dimensions. If 8 sheets are selected at rando
    8·1 answer
  • A firm decides to retain $20,000 from its annual earnings and invest it in developing an advanced manufacturing system. Accordin
    7·1 answer
  • You have savings of $157,000. After talking it over with your spouse, you agree to risk no more than 30% on your new business id
    6·1 answer
  • Under the Federal Insurance Contributions Act, where do the funds for Social
    13·1 answer
  • Child labor laws govern the_______ , type of job, and hours of work for anyone younger than eighteen years old.
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!